xcel energy appendix

Appendix

This material includes forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements include projected earnings, cash flows, capital expenditures and other statements and are identified in this document by the words “anticipate,”“estimate,” “expect,” “projected,” “objective,” “outlook,” “possible,”“potential” and similar expressions. Actual results may vary materially. Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions, including the availability of credit, actions of rating agencies and their impact on capital expenditures; business conditions in the energy industry; competitive factors; unusual weather; effects of geopolitical events, including war and acts of terrorism; changes in federal or state legislation; regulation; final approval and implementation of the pending settlement of the securities, ERISA and derivative litigation; costs and other effects of legal administrative proceedings, settlements, investigations and claims including litigation related to company-owned life insurance (COLI); actions of accounting regulatory bodies; risks associated with the California power market; the higher degree of risk associated with Xcel Energy’s nonregulated businesses compared with Xcel Energy’s regulated business; and other risk factors listed from time to time by Xcel Energy in reports filed with the SEC, including Exhibit 99.01 to Xcel Energy’s report on Form 10-K for year 2004.

This material includes forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements include projected earnings, cash flows, capital expenditures and other statements and are identified in this document by the words “anticipate,”“estimate,” “expect,” “projected,” “objective,” “outlook,” “possible,”“potential” and similar expressions. Actual results may vary materially. Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions, including the availability of credit, actions of rating agencies and their impact on capital expenditures; business conditions in the energy industry; competitive factors; unusual weather; effects of geopolitical events, including war and acts of terrorism; changes in federal or state legislation; regulation; final approval and implementation of the pending settlement of the securities, ERISA and derivative litigation; costs and other effects of legal administrative proceedings, settlements, investigations and claims including litigation related to company-owned life insurance (COLI); actions of accounting regulatory bodies; risks associated with the California power market; the higher degree of risk associated with Xcel Energy’s nonregulated businesses compared with Xcel Energy’s regulated business; and other risk factors listed from time to time by Xcel Energy in reports filed with the SEC, including Exhibit 99.01 to Xcel Energy’s report on Form 10-K for year 2004.

Safe HarborSafe Harbor

4th largest US electricand gas utility —

4th largest US electricand gas utility —

Unemployment rate —August 2005

US 4.9%Xcel service area 4.0%

Xcel annual sales growth —2005-2009

Electric 1.8%Gas 1.5%

Unemployment rate —August 2005

US 4.9%Xcel service area 4.0%

Xcel annual sales growth —2005-2009

Electric 1.8%Gas 1.5%

Strong Regional Economy

Strong Regional Economy

Northern States Northern States Power Power

CompanyCompany--MinnesotaMinnesota

Public Service Public Service Company of Company of

ColoradoColorado

Southwestern Southwestern Public Service*Public Service*

Northern Northern States Power States Power

CompanyCompany--WisconsinWisconsin

* Sale pending on Kansas and Oklahoma properties* Sale pending on Kansas and Oklahoma properties

Organizational StructureOrganizational Structure2004 Results2004 Results

Xcel Energy Inc.$527

RegulatedRegulated NonregulatedNonregulated

NorthernStatesPower

Company -Minnesota

NorthernStatesPower

Company -Wisconsin

PublicService

Company ofColorado

SouthwesternPublicService

Company

$230 $54 $218 $55 $13

Income from ContinuingOperations (Dollars in millions)Income from ContinuingIncome from ContinuingOperations (Dollars in millions)Operations (Dollars in millions)

SubsidiariesEloigneQuixx

HoldingCompany

$(43)

Rate Base Earned Auth- Equity2004 ROE orized Ratio

Average 2004 ROE 2004

Rate Base Earned Auth- Equity2004 ROE orized Ratio

Average 2004 ROE 2004

Rate Base and ReturnsRate Base and ReturnsDollars in millionsDollars in millions

NSP (M) - Electric retail $2,992 10.73% (1) 11.47% 50.3%NSP (M) - Gas retail 402 8.50 10.40 (2) 50.3North Dakota - Electric retail 166 10.80 12.00 50.3North Dakota - Gas retail 39 8.18 11.50 47.6Colorado - Electric retail 3,042 9.18 10.75 50.1Colorado - Gas retail 996 8.76 11.00 50.1Texas - Electric retail 889 9.39 11.50 48.7NSP (W) - Retail electric 538 NR 11.90 55.8NSP (W) - Retail gas 70 NR 11.90 55.8Non-reported 1.4 BTotal including non-reported 10.5 B

NSP (M) - Electric retail $2,992 10.73% (1) 11.47% 50.3%NSP (M) - Gas retail 402 8.50 10.40 (2) 50.3North Dakota - Electric retail 166 10.80 12.00 50.3North Dakota - Gas retail 39 8.18 11.50 47.6Colorado - Electric retail 3,042 9.18 10.75 50.1Colorado - Gas retail 996 8.76 11.00 50.1Texas - Electric retail 889 9.39 11.50 48.7NSP (W) - Retail electric 538 NR 11.90 55.8NSP (W) - Retail gas 70 NR 11.90 55.8Non-reported 1.4 BTotal including non-reported 10.5 B

(1) Projected 2005 ROE of 8.96% based on normal conditions as of May 1, 2005. 2004 result reflects strong trading margins and change in decommissioning accrual.

(2) 2005 decision

(1) Projected 2005 ROE of 8.96% based on normal conditions as of May 1, 2005. 2004 result reflects strong trading margins and change in decommissioning accrual.

(2) 2005 decision

NR: Non-reportableNR: Non-reportable

Reconciliation of EstimatedReconciliation of EstimatedRegulatory Reporting from GAAPRegulatory Reporting from GAAP

Common EquityCommon Equity

2004 GAAP common stockholder’s equity (1) $2,007 $433 $2,287 $781 $5,5072003 GAAP common stockholder’s equity (1) 1,809 425 2,140 814 5,188Average GAAP common stockholder’s equity 1,908 429 2,213 798 5,348Adjustments -5 -5 64 -11 43Adjusted average equity for purposes

of regulatory equity ratio $1,903 $424 $2,277 $787 $5,391

2004 GAAP common stockholder’s equity (1) $2,007 $433 $2,287 $781 $5,5072003 GAAP common stockholder’s equity (1) 1,809 425 2,140 814 5,188Average GAAP common stockholder’s equity 1,908 429 2,213 798 5,348Adjustments -5 -5 64 -11 43Adjusted average equity for purposes


NSP (M) NSP (W) PSCo SPS TotalNSP (M) NSP (W) PSCo SPS Total

Dollars in millionsDollars in millions

DebtDebt

2004 GAAP total debt (1) (2) $2,032 $348 $2,502 $861 $5,7432003 GAAP total debt (1) (2) 2,003 337 1,845 825 5,010Average GAAP total debt 2,018 342 2,173 843 5,376Adjustments -140 -6 94 -16 -68Adjusted average debt for purposes


Regulatory equity ratio 50.4%

2004 GAAP total debt (1) (2) $2,032 $348 $2,502 $861 $5,7432003 GAAP total debt (1) (2) 2,003 337 1,845 825 5,010Average GAAP total debt 2,018 342 2,173 843 5,376Adjustments -140 -6 94 -16 -68Adjusted average debt for purposes


Regulatory equity ratio 50.4%


(1) Source: 2004 Operating Company 10-K’s (2) Consists of long-term debt, current portion of long-term debt and short-term debtSee note on the bottom of the following page for additional information

(1) Source: 2004 Operating Company 10-K’s (2) Consists of long-term debt, current portion of long-term debt and short-term debtSee note on the bottom of the following page for additional information

Reconciliation of EstimatedReconciliation of EstimatedRegulatory Reporting from GAAP Regulatory Reporting from GAAP (Continued)(Continued)

Net IncomeNet Income

2004 GAAP net income (1) $230 $54 $218 $55 $557 Adjustments -25 -26 -51Adjusted net income for purposes of

regulatory net income $205 $54 $192 $55 $506

2004 GAAP net income (1) $230 $54 $218 $55 $557 Adjustments -25 -26 -51Adjusted net income for purposes of

regulatory net income $205 $54 $192 $55 $506

NSP (M) NSP (W) PSCo SPS TotalNSP (M) NSP (W) PSCo SPS TotalDollars in millionsDollars in millions

Depreciation & Amortization – Cash FlowsDepreciation & Amortization – Cash Flows

Financial results for regulatory reporting frequently differ from GAAP.Regulatory reporting includes the use of 12 and 13 month averages for capitalization, eliminates inter-company transactions, excludes non-regulated investments, includes or excludes revenues and or expenses associated with various recovery mechanisms and other factors, all of which may vary from one regulatory jurisdiction to another.

Financial results for regulatory reporting frequently differ from GAAP.Regulatory reporting includes the use of 12 and 13 month averages for capitalization, eliminates inter-company transactions, excludes non-regulated investments, includes or excludes revenues and or expenses associated with various recovery mechanisms and other factors, all of which may vary from one regulatory jurisdiction to another.

Estimated regulatory rate base ($10.5 B) x Regulatory equity ratio (50.4%)= Estimated equity rate base ($5.3 B)

Regulatory net income ($506 M) ÷ Estimated equity rate base ($5.3 B) = Estimated regulatoryreturn on equity (9.6%)

Estimated regulatory rate base ($10.5 B) x Regulatory equity ratio (50.4%)= Estimated equity rate base ($5.3 B)

Regulatory net income ($506 M) ÷ Estimated equity rate base ($5.3 B) = Estimated regulatoryreturn on equity (9.6%)

Calculation of Regulatory Net IncomeCalculation of Regulatory Net Income

2004 GAAP depreciationand amortization – cash flow (1) $352 $48 $234 $100 $735

2004 GAAP depreciationand amortization – cash flow (1) $352 $48 $234 $100 $735


(1) Source: 2004 Operating Company 10-K’s(1) Source: 2004 Operating Company 10-K’s

Potential Cash Flow Statement Summary*Potential Cash Flow Statement Summary*

Cash provided byoperations $1,580 $1,685 $1,795 $1,865

Cash used for investing (1,599) (1,655) (1,464) (1,228)Cash provided (used)

for financing 37 (26) (355) (622)Net increase (decrease) 18 4 (24) 15Cash at beginning of year 60 78 82 58Cash at end of year $78 $82 $58 $73

Cash provided byCash provided byoperationsoperations $1,580$1,580 $1,685$1,685 $1,795$1,795 $1,865$1,865

Cash used for investingCash used for investing (1,599)(1,599) (1,655)(1,655) (1,464)(1,464) (1,228)(1,228)Cash provided (used)Cash provided (used)

for financingfor financing 37 (26)37 (26) (355) (355) (622)(622)Net increase (decrease)Net increase (decrease) 1818 44 (24) 15(24) 15Cash at beginning of yearCash at beginning of year 6060 7878 8282 5858Cash at end of yearCash at end of year $78$78 $82$82 $58$58 $73$73

2006 2007 2008 200920062006 20072007 20082008 20092009Dollars in millionsDollars in millions

* This illustration represents one potential scenario,and does not represent guidance or a most likely outcome

* This illustration represents one potential scenario,and does not represent guidance or a most likely outcome

2006 Key Earnings Guidance Assumptions2006 Key Earnings Guidance Assumptions

Successful rate cases— Minnesota electric request $168 million— Wisconsin electric & gas request $61 million— Colorado gas request $34 million— North Dakota electric request

Weather adjusted sales growth:— Retail Electric 1.3 – 1.7%— Gas 0 – 1.0%

Successful rate cases— Minnesota electric request $168 million— Wisconsin electric & gas request $61 million— Colorado gas request $34 million— North Dakota electric request

Weather adjusted sales growth:— Retail Electric 1.3 – 1.7%— Gas 0 – 1.0%

2006 Key Earnings Assumptions2006 Key Earnings Assumptions

Change from 2005:— Short-term wholesale margins decline

approximately $15 – 30 million— O&M expenses increase 3 – 4%— Depreciation increases $100 – 110 million,

including $60 million increase in decommissioning— Interest increases $10 – 15 million— AFUDC equity expected to increase

$10 – 15 millionContinue to recognize COLI tax deduction Effective income tax rate of 27 – 29%Average shares 428 million based on “If converted”

Change from 2005:— Short-term wholesale margins decline

approximately $15 – 30 million— O&M expenses increase 3 – 4%— Depreciation increases $100 – 110 million,

including $60 million increase in decommissioning— Interest increases $10 – 15 million— AFUDC equity expected to increase

$10 – 15 millionContinue to recognize COLI tax deduction Effective income tax rate of 27 – 29%Average shares 428 million based on “If converted”

Coal Supply ContractedCoal Supply ContractedCoal Supply Contracted

2005 99% 100%2006 94 752007 65 452008 46 45

2005 99% 100%2006 94 752007 65 452008 46 45

CoalCoal Transportation

CoalCoal Transportation

Annual consumption: 32 million tons of lowAnnual consumption: 32 million tons of low--sulfur, sulfur, lowlow--mercury western coalmercury western coal

Electric Fuel and PurchasedElectric Fuel and PurchasedEnergy Cost Recovery MechanismsEnergy Cost Recovery Mechanisms

Minnesota: Monthly recovery of prospective costs

Colorado: Recovery of costs with sharing of deviations up to + $11.25 millionfrom benchmark

Texas: File for semi-annual adjustments –required if + 4% annually

Wisconsin: Biennial rate case – file for interim adjustment if costs fall outside + 2% annually

New Mexico: Recovery of costs with 2 month lag

Minnesota: Monthly recovery of prospective costs

Colorado: Recovery of costs with sharing of deviations up to + $11.25 millionfrom benchmark

Texas: File for semi-annual adjustments –required if + 4% annually

Wisconsin: Biennial rate case – file for interim adjustment if costs fall outside + 2% annually

New Mexico: Recovery of costs with 2 month lag

Retail Electric Rate* ComparisonRetail Electric RateRetail Electric Rate** ComparisonComparison

0

2

4

6

8

10

12

14

16

18

0

2

4

6

8

10

12

14

16

18 * EEI typical bills – Summer 2005* EEI typical bills * EEI typical bills –– Summer 2005Summer 2005Cents per KWhCents per KWhCents per KWh

Amarillo

Amarillo

Amarillo

Kansas City

Kansas City

Kansas CityDenverDenverDenver

Mpls/St. Paul

Mpls/St. Paul

Mpls/St. Paul

BostonBostonBoston

Des Moines

Des Moines

Des Moines

Chicago

Chicago

Chicago

Milwaukee

Milwaukee

Milwaukee

Phoenix

Phoenix

Phoenix

Salt Lake City

Salt Lake City

Salt Lake City

5.465.465.466.486.486.48

8.488.488.48

St. Louis

St. Louis

St. Louis

MiamiMiamiMiami

New York

New York

New York

Senior Debt RatingsSenior Debt Ratings

Holding Co. -- Baa1 -- BBB-NSP (M) A2 A3 A- BBB-NSP (W) A2 A3 A- BBB PSCo A3 Baa1 A- BBB-SPS -- Baa1 -- BBB

Outlook Stable Stable

Holding Co. -- Baa1 -- BBB-NSP (M) A2 A3 A- BBB-NSP (W) A2 A3 A- BBB PSCo A3 Baa1 A- BBB-SPS -- Baa1 -- BBB

Outlook Stable Stable

Secured Unsecured Secured Unsecured Secured Unsecured Secured Unsecured Moody’sMoody’s S&PS&P

NSP (M)NSP (M) $ 673$ 673 $ 879$ 879 $ 697$ 697 $ 564$ 564 $ 517$ 517

NSP (W) NSP (W) 5858 6666 6767 9595 6363

PSCoPSCo 414414 525525 684684 604604 457457

SPSSPS 110110 9999 127127 121121 111111

TotalTotal $1,255$1,255 $1,569$1,569 $1,575$1,575 $1,384$1,384 $1,148$1,148

Capital Expenditure ForecastCapital Expenditure Forecastby Operating Companyby Operating Company

2005 2006 2007 2008 20092005 2006 2007 2008 2009


Capital expendituresCurrent year $211 $336 $213 $138 $64Cumulative $258 $594 $806 $944 $1,008

Equity ratio 48.5% 48.5% 48.5% 48.5% 48.5%

Return on equity 10.86% 10.86% 10.86% 10.86% 10.86%

Equity return $8 $23 $38 $47 $52

Capital expendituresCurrent year $211 $336 $213 $138 $64Cumulative $258 $594 $806 $944 $1,008

Equity ratio 48.5% 48.5% 48.5% 48.5% 48.5%

Return on equity 10.86% 10.86% 10.86% 10.86% 10.86%

Equity return $8 $23 $38 $47 $52

Minnesota MERP Minnesota MERP –– Potential EarningsPotential EarningsDollars in millionsDollars in millions

2005 2006 2007 2008 20092005 2006 2007 2008 2009

Capital expendituresCurrent year $62 $198 $331 $284 $73Cumulative $66 $264 $595 $879 $952

Equity ratio 56% 56% 56% 56% 56%

Return on equity 10.75% 10.75% 10.75% 10.75% 10.75%

Equity return $2 $10 $26 $45 $55

Capital expendituresCurrent year $62 $198 $331 $284 $73Cumulative $66 $264 $595 $879 $952

Equity ratio 56% 56% 56% 56% 56%

Return on equity 10.75% 10.75% 10.75% 10.75% 10.75%

Equity return $2 $10 $26 $45 $55

Comanche 3 Comanche 3 –– Potential EarningsPotential Earnings

2005 2006 2007 2008 20092005 2006 2007 2008 2009


xcel energy appendix

Economy & Finance